ANI Pharmaceuticals (ANIP)

[Just the facts maam]

ANIP share price is treated better than many pharma companies but worse than others and the ALIM deal has yet to close. With such a low share total PPS can be moved up and down rather easily. One problem is that it is still lightly covered. A lot of outdated investment information on ANIP is out there with no reference to their focus on rare disease. With only 33.33 million shares authorized, I believe they don't want heavy coverage, yet. Lack of liquidity could force them to issue shares prematurely. ANIP's MO is to under promise and overdeliver. I don't expect this to change. Once profits exceed what they need for business development, one way to counter the market manipulation is by returning shareholder value in the form of a dividend. It has no bearing on share price and takes the ball out of the hands of market manipulators. Though ANIP's Annual report indicates they do not intend to issue dividends for the foreseeable future. This is especially true, if they intend to expand globally.

ANIP has proven prudent in its acquisitions. Gilead paid 6.6 times peak sales for Cyma Bay and Abbvie paid 5 times peak sales for ImmunoGen. In fairness both companies have longer IP protection. In S&P 's analysis they believe peak sales of $200 million for ALIM's Iluvien an Yutiq, though a number of analyst believe it to be higher. S&P believe that they unlikely to face generic competition due to cost of trials and complexities in developing and manufacturing these drugs, which is almost as good as IP protection. The $381 million deal at 1.9 times peak sales seem like a bargain. Additionally, S&P upgraded ANIP to BB following the deal. This should reduce the cost of borrowing somewhat.

S&P Global ANIP/ALIM deal

The Corti and Novitium deals show that ANIP is good at generating value through their business development, I am certain the ALIM deal will be just as good for ANIP.

As always, we are the mercy of the market manipulators, for the time being.

JMHO